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Options for my Car Loan after Chapter 7

AtomicDonut
New Visitor

Options for my Car Loan after Chapter 7

Ok so I don't know what to do, or how much time I would have.  Let me explain:  I filed and had my hearing on July 1st, is set to discharge on 9/30.  At first I thought that I would be able to keep my car and continue to pay for it.  However, it seems that I won't be able to afford the payments and I'm way upside down on the value.  So my attorney tells me that I can't get hurt on my credit report if I give it back to the bank.  I don't want to play the system, but how long will I have to secure another car if I stop making payments?  I have been making payments up till now, but I don't know how much longer I can do that.  I hope that makes sense.  I just don't know what to do.  

Message 1 of 5
4 REPLIES 4
rako
Established Member

Re: Options for my Car Loan after Chapter 7

kind of a vague way to type out a situation...

 

how much do you owe on the car?

 

how much did you buy it for?

 

what is it currently worth?

 

what is the payment per month?

 

some banks will actually ditch the car if you are too upside down and they see no return in pursuing the vehicle.

 

at that point you can sometimes motion to redeem the vehicle for a dollar.... or even if they have an interest just redeem the car at market value.

DISC 8/14/17: EQU: 494 TRS: 469 EXP: 492
GOAL: GET BACK TO 760
CURRENT: EQU: 598 TRS: 624 EXP: 605
Credit Karma: TRS: 678 EQU: 652
Rebuild Progress: PENFED Member, Chase Checking Account, Credit One Unsecured 300, Milestone Gold Unsecured 300, Sonoma Williams Comenity 250
Message 2 of 5
AtomicDonut
New Visitor

Re: Options for my Car Loan after Chapter 7

Yeah sorry about that.  I owe about 25k on the car, and according to Kelly Blue Book it's worth about 16k.  I bought it for about 29k, and I pay $372 per month on it.  

Message 3 of 5
StartingOver10
Moderator Emerita

Re: Options for my Car Loan after Chapter 7


@AtomicDonut wrote:

Yeah sorry about that.  I owe about 25k on the car, and according to Kelly Blue Book it's worth about 16k.  I bought it for about 29k, and I pay $372 per month on it.  


^^^Based on this information, it is best to turn in your vehicle. 

 

No one here would know the time you have been stopping your payments and turning in the vehicle. Are you current now?  I know when I turned mine in the day after discharge the lender sent someone out right away to pick it up. I kept up payments even during the Bk because I too was going to keep my upside-down vehicle until I came to my senses and bought a cheap cash car for two years.  

Message 4 of 5
rako
Established Member

Re: Options for my Car Loan after Chapter 7

yeah stop paying on it... if you want to keep...

 

offer a motion to redeem for like 12-13k or something super low ball.. see how they react.

 

then see if you can get the money together for it, if not, i would definitely just give the car up.

 

sometimes, the creditor will just ditch the car too and then there are different ways to proceed after that.

DISC 8/14/17: EQU: 494 TRS: 469 EXP: 492
GOAL: GET BACK TO 760
CURRENT: EQU: 598 TRS: 624 EXP: 605
Credit Karma: TRS: 678 EQU: 652
Rebuild Progress: PENFED Member, Chase Checking Account, Credit One Unsecured 300, Milestone Gold Unsecured 300, Sonoma Williams Comenity 250
Message 5 of 5
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